BANK OF PUNJAB(2013)

8/13/2019 BANK OF PUNJAB(2013)

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THE BANK OF PUNJAB

INTRODUCTION TO THE BANK OF PUNJAB

The Bank of Punjab is working as a scheduled commercial bank with its network of

254branches at all major business centers in the country. M! P"#$" has awarded the Bank

with the credit rating ""% for &ong term and "'( for !hort term) based on its financial results

for the year ended as on *'st +ecember 2,,4. The Bank -roides all ty-es of banking serices

such as +e-osit in &ocal #urrency) #lient +e-osit in /oreign #urrency) $emittances) and

"dances to Business) Trade) 0ndustry and "griculture. The Bank of Punjab has indeed entered

a new era of science to the nation under e1-erience and -rofessional hands of its management.

The Bank of Punjab -lays a ital role in the national economy through mobiliation of hitherto

unta--ed local resources) -romoting saings and -roiding funds for inestments. "ttractie

rates of -rofit on all ty-es of de-osits) o-ening of /oreign #urrency "ccounts and handling of

/oreign 31change business such as 0m-orts) 31-orts and $emittances) /inancing) Trade and

0ndustry for working ca-ital reuirements and money market o-erations are some facilities

being -roided by the Bank. The lending -olicy of Bank is not only cautious and constructie

but also based on -rinci-les of -rudent lending with ma1imum em-hasis on security. "s

agriculture is considered as backbone of our economy the Bank of Punjab has introduced

6issan +ost "griculture /inance !cheme to small farmers.

HISTORY

3stablished in '8) in -ursuance of The Bank of Punjab "ct '8 and was gien the status of

scheduled bank in '4. 0t is -rinci-ally engaged in commercial banking and related serices

with its registered office at 7%3gerton%road &ahore.

VISION

To be customer focused bank with ser i ce e1 cellence

MISSION STATEMENT

To e1 ceed the e1-ec tat ions of our s take holder s by leeraging our relat ionshi- wi th the

9oernment of Punjab and del i er ing a com-lete range of -rofessional solutions with a focus

on -rogrammed drien -roducts : serices in the "griculture and Middle Tier Markets through

a motiated team.

OUR VALUES


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Our Customers as ;ur first -riority

Prof i t!i " i t# for the -ros-erity of our stakeholder that allows us to constantly) im-roeand

succeed

Cor$orte so%i" to 3nrich the &ies of community where

res$o&si!i " i t# we o-erate

Re%o'&i t io& &( for talented and high -erforming

re)r( em-loyees

E*%e" "e&%e in eery thing we do

I&te'r i t# in all our dealing

Res$e%t for our customer and each other


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what are the main clients) and what are the whole com-etitors. 0n the * rd-ortion) 0 hae written

B;P de-artment>s information) its task) all de-artment function. !o it will increase the

awareness of the readers regarding to B;P +e-artments actiities. The other main and ital

-ortion of my re-ort is my tasks which hae been assigned during internshi-. 0n re-ort 0 hae

mentioned all de-artments 0 worked and got -ractical knowledge. =ere 0 want to mention these

entire de-artments which 0 got training

'. "ccount ;-ening +e-artment

2. $emittance +e-artment

*. #learing +e-artment

4. "ccounts +e-artment

5. #redit +e-artment

The main -ortion of my re-ort regarding to B;P =$M actiities will be start after my training

-rogram. 0 hae written the structure of =$M de-artment) its recruiting -rocess) selecting

-rocess) hiring -rocess) training and deelo-ment) o--ortunities and benefits) labor

management relation conduct by the B;P. "fter this -ortion) you will be able to read about

#ritical analysis with my true obseration. $e-ort will also show you the !?;T analysis)

where readers could able to understand B;P strength) weakness) o--ortunity and threats. "fter

that 0 hae also written conclusion and necessary recommendation in light my finding.

Com$rti+e A&"#sis

B&,i&' I&(ustr#

Banking is one of the most sensitie businesses all oer the world. Banks -lay ery

im-ortant role in the economy of a country and Pakistan is no e1em-tion. Banks are

custodian to the assets of the general masses. The banking sector -lays a significant

role in a contem-orary world of money and economy. 0t influences and facilitates many

different but integrated economic actiities like resources mobiliation) -oerty

elimination) -roduction and distribution of -ublic finance. 0t is -urchase of car or building

of a home) banks are always there to -roide the serices. 0t is -layground or any

educational or healthy societal actiities the money of banks nurtures them. 0t is an

industrial -roject or agricultural deelo-ment of the country the s-onsor%shi- of banks is

ery much inoled. Banks -lay ery -ositie and im-ortant role in the oerall economic


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+eelo-ment of the country.

Pakistan has a well%deelo-ed banking system) which consists of a wide ariety of

institutions ranging from a central bank to commercial banks and to s-ecialied

agencies to cater for s-ecial reuirements of s-ecific sectors. The country started

without any worthwhile banking network in '47 but witnessed -henomenal growth in

the first two decades. By '7,) it had acuired a flourishing banking sector.

Com$riso& )it- ot-er !&,s

@ationaliation of banks in the seenties was a major u-set to domestic banking

industry of the country) which changed the whole com-le1ion of the banking industry.

?ith irrational decision at the to- all the commercial banks were made subserient to

the -olitical leadershi- and the bureaucracy. !-ecialied banking institutions were

already working in the -ublic sector. The new accountability -aradigm changed the

business ethics in the banking industry) and with this change started the disaster.

@ationaliation of banking industry was accom-anied by iolent changes in the e1ternal

alue of ru-ee. The commercial banks thus lost their assets management euilibrium)

initiatie and growth momentum. They ceased to be a business concern and became

big bureaucracies. This was accom-anied by indiscreet loaning under -olitical -ressure.

They suffered from three terminal diseasesA non%-erforming loans higher intermediation

cost.The era of nineties was the clima1 of -riatiation) deregulation and restructuring in the

domestic banking industry and financial institutions. The Muslim #ommercial Bank was

the first bank to -riatie. /ollowed by "llied Bank limited) Cnited Bank &imited and

now the =abib Bank &imited hae been -riatied. ;ne thing good for that -articular

-eriod was the recruitment of fresh officers in the domestic banking industry through

well%organied -olicies of Banking #ouncil. ?ith the decay of Banking #ouncil there

was flood of insincere) non-rofessional) incom-etent candidates directly a--ointed

recruited in all the domestic banks of the country.

Pu!"i% se%tor !&,s

@ational Bank of Pakistan @BP

/irst ?omen Bank &imited /?B


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The Bank of 6hyber 6B

The Bank of Punjab B;P

The goernment of Pakistan -ermitted small -riate sector banks to o-erate) which indulged in

doubtful -olicies to -romote business. The -ublic sector banking) which constituted the

backbone) thus continued to suffer because of their a--roach) sie and carried oer liabilities.

Mehran Bank is the -rime e1am-le of that kind of la1 banking in the country) which ultimately

merged into @ational bank of Pakistan i.e. last resort of domestic banking industry.

Lo%" Pri+te B&,s

"skari #ommercial Bank &imited Bank "l%/alah &imited Bank "l =abib &imited

Bolan Bank &imited

/aysal Bank &imited

Metro-olitan Bank &imited

Platinum #ommercial Bank &td

Prime #ommercial Bank &imited

!audi Pak #ommercial Bank &td

P0#0# #ommercial Bank &imited

!oneri Bank &imited

Cnion Bank &imited

Muslim #ommercial Bank &imited"llied Bank of Pakistan

Cnion Bank &imited

Mashre Bank

0n the meanwhile) western banks started entering into the business. They) with the su--ort of

ruling elite) concentrated on the big business) leaing the routine business to the local banks.

This reduced the -rofitability of the local banks.

Forei'& B&,s

"B@ "mro Bank

"l Baraka 0slamic Bank

"merican 31-ress

The Bank of Tokyo Mitsubishi


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#0T0 Bank

#redit "gricole 0ndo !ue

+eutsche Bank

+oha Bank

3mirates Bank

=abib Bank ". 9. Durich

=ong 6ong !hangai Banking

#or-oration

0/0#

Mashre Bank PE!#

;man Bank

$u-ali Bank

!tandard #hartered Bank

S$e%i" B&,s

Dari Tariati Bank &td.

0ndustrial +eelo-ment Bank of

Pakistan

Punjab Proincial #oo-eratie Bank &imited

Busi&ess $ro%ess &"#sis

SERVICES

The Bank of Punjab -roide the following serices to its customers

ATM F%i"it#

The Bank of Punjab -roides "TM #ard facility to its customer) using M net system) giing

to customer 24%hour access to their accounts from any "TMs.

Sfet# Ti$s

.ur( Your Cr(

To aoid any damage kee- your ;nline #ash "TM card in a safe -lace.

!ign on the back immediately after receiing your "TM card.

@eer write your P0@ or share it with anyone including the bank staff.


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+on>t use your -hone number or other -ersonal information>s like your date of

birth etc. as P0@.

Fou can make ma1imum of three P0@ entries Gi.e. two entries in case you

enter the wrong P0@ first timeH after which your card will be ca-tured by the

"TM machine.

Be Bri'-t

0n case you need to use an "TM after dark always choose an "TM) which is

well lit.

0t is adised to retain the recei-ts until you match them against your account

statement.

St# A"ert

0t is safe to check your surrounding before using "TM.


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The Bank of Punjab -roides the ;nline Banking /acility to its account holders at '47 Branches

all oer Pakistan. #ash may be acce-ted at a branch for crediting accounts at another branch a

branch can also -ay the #heues by debiting the customer>s account at

another branch. There are '47 branches) which are -roiding online facility at this time.

/ollowing facilities are aailable at Bank of Punjab>s ;nline Program for its customersA

'. Payments of #heues.

2. #ash $ecei-ts.

*. Transfer of /unds through #heues or #ash between Branches.

Co&sumer Fi&&%i&'

#onsumer financing refers to any financing allowed to indiiduals by financial institutions to

meet their -ersonal needs. 0t gies indiiduals the ability to generate funds for their

-ersonal consum-tion by borrowing against future income. 0t can range from financing a

acation) to buying a car or a house) etc.

#onsumer financing de-artment of The Bank of Punjab is offering loans under the following

schemes

B;P Iuick #ash

B;P "asaish &oan

B;P #ar &oan B;P =ouse &aon

B;P +emand /inance

BOP 1UICK CASH

The Bank of Punjab IC0#6 #"!= is a running finance facility -roided to salaried

indiiduals through their bank accounts with the Bank for -urchase of consumer items or

-ersonal needs. The facility is an alternatie to consumer financing offered by other banks

e1ce-t it is $/ instead of +emand finance) which is more faorable to the borrower.

ELI.IBILITY CRITERIA

Between 25 and 55 years of age

Permanent em-loyee of selected organiations haing at least * years of

e1-erience


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#om-uteried @ational 0dentity #ard holder

@et take home salary is $s.'5,,, % : aboe as mentioned on salary sli-

salary certificate Ge1cluding benefitsH. /or 9ot. 3m-loyees net take home

salary is $s.',) ,,,%

Lo& mou&t2Limit

Minimum amount is $s.5,) ,,, and ma1imum amount is $s. 2,,),,,J

Te&ure of Lo&

&oan is aailable for one year) further renewable subject to satisfactory conduct of account.

Mr,3u$ Rte

Most com-etitie rate in the market) which will be calculated on daily -roduct basis) which

is

/or senior Bureaucrats : 31ecutie "erage si1 months 60B;$( K,,BP! of

#or-orate #lient with floor rate of '4.5L -.a.

/or all other client "erage si1 month 60B;$ ( K,, BP!

?ith /loor rate of 'KL -.a.

Ho) Lo& )i"" !e re$i(

&oan will be re-aid on +emand &um- sum.

Pre3S&%tio& Do%ume&t Re4uireme&ts

"--lication /orm #o-y of #@0#

2 recent -hotogra-hs

&atest !alary !li-!alary certificate on #om-anys letterhead

&atest #o-y of utility Bills

#o-y of serice 0+ card

K months "# statement showing salary being credited

Post3S&%tio& Do%ume&t Re4uireme&ts

Two -ersonal guarantees Ge1-ected incase of B;P em-loyeeH

/inancing "greement

+.P. @ote

&etter of hy-othecation

Post +ated #heues


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?hite +ocuments

0. &etter ;f authority

00. "uthoriation consent

000. &etter of "rrangement

0


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normally , days.

OBECTIVES OF INTERNSHIP

This internshi- was the -art of my study course) so objectie of this internshi- was to

learn and gain some -ractical e1-erience. +uring the MB" -rogram) 0 studied many

courses about finance) management etc. =ere my aim was to see the a--lication of this bookish

knowledge and its -ractical im-lementation. =ow it is useful in -ractical life. 0

saw the differences in bookish knowledge and its a--lication.

0n all jobs related to finance) there is inolement of banks. !o my aim was to learn how

banks deal with cor-orate and general information about rules and regulation of banks.

My second objectie of this internshi- was to learn about general banking) as customer

0 tried to get e1-erience) how to work with -eo-le of different age) different educational

background) and different interests. =ow 0 can be a best team -layer) how to interact

with officer and deal with subordinates.

.

Ne) K&o)"e('e A%4uire(

"s this was my first e1-erience in any bank) so all working of bank was new for me.

A!out %%ou&t o$e&i&'

"ccount o-ening is a sim-le -rocess but it becomes com-licated in case of cor-orate

accounts. /or indiidual or joint account) account o-ens on following sim-le reuirements. #o-y of national 0+ card

?ritten eidence of what a--licant is doing

"n introducer Ga -erson who already holds account in the bankH for account

o-ening.

$euirement for com-any account are as follows

?ritten reuest on the letterhead of com-any from an authoried -erson to

o-en com-any>s account

#hief e1ecutie) com-any secretary and director along with common seal

must sign resolution

"ttested #@0# co-ies of all directors

/orm 2 attested from registrar of joint stock com-anies

Memorandum and articles of association.


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#ertificate of incor-oration

#ertificate of commencement of business only in case of -ublic limited

com-any

"fter the com-letion of these reuirements) bank will o-en the account and sends letter of

thanks to its customer. ?hen account holder comes with letter of thanks bank will issue

cheuebook to account holder. 0f cheuebook is lost the account holder has to gie written

a--lication for the sto- -ayment of cheues of that cheuebook and fill a form for issuance

of new cheuebook.

Remitt&%e

Banks offers different ty-es remittance haing different s-ecification. These remittances are

demand draft) for out station -ayment. Mail transfer is to transfer the amount by mail in any

account of same bank. Telegra-hic transfer is same like the MT but here fa1 machine is

use instead of mail. Pay order is used for intercity -ayment. This is main difference

between +emand +raft and Pay ;rder. #all de-osit recei-t is used in case of tender or

auction.

CLEARIN.

#learing is used to -ay or receie -ayments to other banks. There are 2 ty-es of clearing

0nward clearing

;utward clearingI&)r( %"eri&'

#heues of our branch that are de-osited at other banks are brought to us by @0/T. This is

called inward clearing. 0n inward clearing we +3B0T ac of our ac holder and #$3+0T other

branch.

Out)r( %"eri&'

0n outward clearing cheues of other banks are -resented in our branch. 0n it we check

certain factors such as words and figure difference) date of cheue etc.* stam-s are

stam-ed in these cheues

#learing stam-

#rossing stam-

Payees ac credited stam-

0n outward clearing we +3B0T sus-ense ac and #$3+0T ac no. of our ac


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holders.

CHE1UE RETURN IN OUT5ARD CLEARIN.

0f cheue is returned in outward clearing we make an entry of the returned cheue in the

register and gie it back to our customer after haing his signatures in the register.

CHE1UE RETURN IN IN5ARD CLEARIN.

0f the cheue is returned in inward clearing) we fine our ac holder $s ',, as a -enalty and

also make an entry in the register.

INTER BRANCH CREDIT TRANSACTION 6IBC7

0B# adice is made for both inward and outward clearing.

CASH

#ash de-artment -erform the res-onsibilities to deal with cash) transfer amounts from one

account to other accounts and calculate the -rofit for different ty-es of accounts. ?hen

cheue is -resented to bank) officer match the word and figure of cheue. 0f words and

figure is correct then officer erify the signature and check the date. " cheue can be

conerted in to cash within si1 month. "fter si1 month cheue e1-ires. /or P&! account

bank calculate the -rofit on the minimum balance in account from Kth to 2th of the month.

Bank -ays this -rofit after si1 moth or transfer in account of account holder after si1 month.

/or cor-orate account -rofit is calculated on daily basis. Profit is credited after a moth in the

#P" account. /ormula used to calculate the -rofit isProfit N #a-ital O days O GLH

*K5 O ',,

FOREI.N TRADE

/oreign trade is diided in two -arts) 0m-ort and 31-ort

Im$orts

/or im-ort any -roduct) im-orter first contact with foreign e1-orter. There are three

-ossibilities for trade) one is the adance -ayment of the im-orted -roduct) second is

contract between two -arties and is the ) when both -arties im-orter do not rely on

foreign e1-orter. "dance -ayment and contact is sim-le -ayment through bank) but in

bank guarantee about the foreign e1-orter. To o-en im-orter reuest for issuance of

on legal reuired -a-er with Performa inoice) 0 forms and insurance of the -roduct.

0m-orter also gies detail of condition of . "fter this reuest bank will send through


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swift. "fter receiing documents) foreign im-orter shi-s the -roduct and sends the bill of

lading or "?B to local bank. Bank checks the and bill of lading. 0f there is any

discre-ancy) bank takes the acce-tance from im-orter about the discre-ancies. To clear

the im-orted -roduct from -ort) im-orter takes the bill of lading from bank after the -ayment

of . 0f im-orter cannot -ay the amount there is two facilities from bank) /0M and /"T$. 0n

/0M the im-orted -roduct remain in the custody of bank. 0m-orter has facility to realie the

uantity of -roduct as after -ayment of that uantity. /"T$ facility is normally for '2, days.

This facility is for the reliable customers. 0n this facility customer release the whole

im-orted -roduct.

E*$ort

31-ort is just like im-orts but here we act as e1-orter bank. 0n e1-ort we -erform all that

actiity which foreign banks -erform in case of im-ort. 31-orter -roides the documents

like bill of e1change) "?B) certificate of origin) -acking list and all other document reuired

in contract or with 3 form. Bank sends these documents to foreign bank. ;n receiing

these documents) bank -ays the amount according to conditions in . ;r #ontact. 0n

e1-ort bank -roides the refinancing and -urchasing facility to customers. ?hen customer

has relied on foreign im-orters then bank take risk and -urchase the e1-orts after

shi-ment. 31-orter receies -ayment from bank) now whole risk of this trade is conerted to

bank. This facility is called negotiation or -urchasing. 0n refinancing bank finance thelocal e1-orter according to -rudential regulation of state bank.

A(+&%es

Main working of "dances is de-artment is to -roide loan to cor-orate client. This main

job of this de-artment is to maintain the credit limit of client) offer loan) a--roe loans and

like other work related to cor-orate loan. @ormally banks offer the loan in form of +emand

finance) cash finance) running finance and other schemes according to customer

reuirements. $unning finance facility is to meet the day%to%day e1-enses. 0n running

finance bank debit the account of cor-orate client and issue the cheuebook. #lient can

cash the reuire amount from this account. #ash finance facility is to meet seasonal

reuirement of cash. /or e1am-le in cotton season) te1tile related com-anies reuire cash

to buy cotton. Bank -roide loan and cotton remain in custody of bank) to -roide different

loans banks reuire different securities like &ien) Pledge) =y-othecation and Mortgage.


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&ien is marked on liuid assets mortgage is for the assets like land or building. Pledge is

offered for cash finance or seasonal finance.

KARACHI8 T-e B&, of Pu&/! 6BoP7 fi&""# &&ou&%e( its &&u" resu"ts o& Fri(#

fter $erio( of t-ree #ers &( $oste( &omi&" $rofit of Rs9:; mi""io& for >?

fo""o)i&' si'&ifi%&t &et "osses of Rs>= !i""io& &( Rs: !i""io& i& = &(


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for !hort term) based on its financial results for the year ended as on *'st +ecember

2,,4

000. The Bank of Punjab has a large network of branches. There are 254 branches all

oer the Pakistan

0


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it may affect the bank

00. 3ntrance of foreign bank in com-etition with local bank is great threat for bank of

Punjab.

000. The !tate Bank of Pakistan often im-oses arious restrictions on banks. Therefore)

none of banks is inde-endent in -olicy making and can launch any -roduct without

the -ermission of the !tate Bank of Pakistan.

0


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member of bank of Punjab are coo-eratie with me and really hel- me to achiee my

objectie.

Bi!"io'r$-#

htt-Awww.bo-.com.-k

htt-Awww.sb-.org.-k


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htt-Awww.business%standard.com

htt-Awww.sheshunoff.com

!taff of the bank of Punjab

"nnual re-ort of the Bank of Punjab


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."ossr#

A(+i%e " banks written acknowledgement of a transaction

ATM automatedautomatic teller machine

Asset tur&o+er is a ratio focusing on the olume of sales achieed by the

business

Asset $ortfo"io "llocating the funds to different assets classes

A5B "ir way billBi"" of e*%-&'e "n order written by an e1-orter instructing an im-orter) or an

0m-orter>s agent) to -ay a s-ecified amount of money at a

s-ecified time

Bi"" of "(i&' " document issued to an e1-orter by a common carrier

trans-orting merchandise. 0t seres as a recei-t) a contract) and a

document of title.

BPS Basic -oints G!et by the bank to adjust marku-H

C$it" A(e4u%# #a-ital adeuacy means haing enough ca-ital funds to -rotect it

from the risk that customer could lose their de-osits as a result of

trading losses) e.g. from bad debt by the bank.

CDR #all de-osit recei-t

CPA #or-orate -remium account


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Cre(it rti&' A measured judgment) or formal o-inion) about the likelihood that

0nterst -ayments on -articular issue of bonds or other debt security

will be -aid full and on time) and that debt -rinci-le will be re-aid in

full at maturity. $atings are by s-ecialist agencies. The highest

credit rating for long%term debt is """.

Commer%i" !&,s "n authoried institutions and -erform four functions. They acce-t

de-osits) make loans) arrange -ayment of bills and -roide a

number of customer serices

Dt C-e%, +ata check is a document has records of all loan of customer

form all banks.

DD +emand draft

DP Note +emand -romissory note) a legal document

Di+i(e&( Part of a com-anys -rofits -aid to shareholders

Er&i&' $er S-re the -ortion of a com-anys -rofit allocated to each outstanding

share of common stock

E4uit# Total assets minus total liabilities.

FIM /inance against im-orted merchandise

FATR /inance against trust recei-t

H#$ot-e%tio&KIBOR 6arachi 0nter bank offer $ate

LC " bank issued document that guarantees -ayment for a

-re%s-ecified -eriod and amount

Letter Of ut-orit# " written agreement to allow Bank to de-osited or withdrawn from

an account

Lie& "n asset held in e1change for debt financing. 0n lien normally

there are liuid assets like bonds) shares.

Mr,u$ The charge you -ay if you borrow money or the income you get if

Fou inest it.

MT Mail transfer

Mort''e Mortgage is charge on immoeable -ro-erty to secure the finance

NIFT@ational 0nstitute of facilitation technology G-tH


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PLS %%ou&t Profit loss sharing account

Profit!i"it# Rtio The ratio used to measure the ability of a com-any to

generate -rofits.

P"e('e Pledge is the bailment of goods for security. 0n -ledge goods are

in -ossession of bank.

Si'-t LC 0n sight -ayment will be made on receiing the shi-mentdocuments.

Sto%, (i+i(e&( " -ayment by the cor-oration in share of stock rather than cash

S#&(i%te " grou- of banks acting together tem-orarily to loan money in a

syndicated credit or to underwrite a new issue of bonds

TT Tele gra-hic transfer

Us&%e LC 0n usance -ayment will be made after , or '2, days of

shi-ment

5or,i&' C$it" !tock -lus debtor minus short%term creditor

BANK OF PUNJAB(2013)

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Transcript of BANK OF PUNJAB(2013)